Shares up 2 percent
Taiwanese shares closed up 2 percent yesterday on a Wall Street rally overnight and brightening prospects for investment ties with China, dealers said.
The TAIEX index rose 145.37 points to 7,429.98 on turnover of NT$101.75 billion (US$3.14 billion). Gainers outnumbered losers 1,697 to 745, while 191 shares remained unchanged.
The market was boosted by big caps focusing on flat panels and semiconductors after Taipei said it could ease controls on high-tech investments in China by local companies while allowing further Chinese investments in Taiwan.
“The remarks certainly boosted investor confidence,” Capital Securities (群益證券) analyst Chen Yu-yu (陳育娛) said. The market, however, could cap at 7,500, Chen said.
PRC-bound exports recovering
The Bureau of Foreign Trade said Taiwan’s China-bound exports would recover next month and the rest of the year. Export orders from China started to return to positive territory in July, bureau director-general Huang Chih-peng (黃志鵬) told a media briefing.
Huang said the ministry intends to spend 25 percent of the annual trade promotion fund, from the current 15 percent, on sponsoring trade shows and other activities to help raise name recognition of Taiwan makers in China.
Huang said the promotion campaigns will target second-tier cities like Nanjing and Wuhan. The image improvement program can also help boost competitiveness of domestic products after Taiwan and China sign an economic cooperation framework agreement, he said.
AUO sells UMC shares
AU Optronics Corp (AUO, 友達光電), Taiwan’s largest maker of liquid-crystal displays, sold 22 million shares of United Microelectronics Corp (UMC, 聯電), the world’s second-largest custom-chip maker, for NT$346 million, the Hsinchu-based company said in an exchange filing yesterday.
AU Optronics sold the shares at an average price of NT$15.72 and made a profit of NT$113.8 million, the statement said.
Fubon cancels capital plan
Fubon Financial Holding Co (富邦金控) will cancel a capital enhancement plan because of changes in market conditions and the company’s finance plans, the company said in a stock exchange filing yesterday.
Last month, Fubon announced it would issue Global Depositary Receipts to increase its working capital and strengthen its finances. The company had planned to raise up to US$900 million through the issuance of new shares.
ChiNext firms attract huge bids
Ten companies scheduled to list on the ChiNext, China’s soon-to-be-launched NASDAQ-style board, said yesterday they attracted a combined 784.1 billion yuan (US$115 billion) in bids for subscriptions.
Demand for the initial public offerings’ retail tranche was high with shares in the firms, which range from software to medical equipment makers, oversubscribed by 82 to 258 times, filings to the Shenzhen Stock Exchange said.
The institutional tranche of the initial public offerings (IPO) the firms were oversubscribed by 35 to 117 times, the statements said.
The companies, which took subscriptions from retail and institutional investors on Friday, will raise a total of 6.68 billion yuan from the IPOs — more than double the 3.16 billion initially sought.
NT dollar gains on greenback
The NT dollar gained ground against the US dollar on the Taipei Foreign Exchange yesterday, rising NT$0.099 to close at NT$32.376.
A total of US$844 million changed hands during the day’s trading.
From India to China to the US, automakers cannot make vehicles — not that no one wants any, but because a more than US$450 billion industry for semiconductors got blindsided. How did both sides end up here? Over the past two weeks, automakers across the world have bemoaned the shortage of chips. Germany’s Audi, owned by Volkswagen AG, would delay making some of its high-end vehicles because of what chief executive officer Markus Duesmann called a “massive” shortfall in an interview with the Financial Times. The firm has furloughed more than 10,000 workers and reined in production. That is a further blow
Answering to a reported request by Germany to help address a chip shortage in its auto industry, the Ministry of Economic Affairs (MOEA) yesterday said that it was in talks with domestic chip suppliers. Foreign media over the weekend reported that German Minister of Economic Affairs Peter Altmaier had sent a request to Taipei to ask Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to cooperate more closely with German automakers to provide microchips and sensors, to bridge a shortage that has emerged over the past few months. The MOEA said that it had not yet received the request and could therefore not elaborate
FOCUS ON FOUNDRIES: An analyst said that some investors would be disappointed because they were expecting a larger announcement of a partnership with TSMC Intel Corp’s incoming chief executive officer Pat Gelsinger on Thursday pledged to regain the company’s lead in chip manufacturing, countering growing calls from some investors to shed that part of its business. “I am confident that the majority of our 2023 products will be manufactured internally,” Gelsinger said. “At the same time, given the breadth of our portfolio, it’s likely that we will expand our use of external foundries for certain technologies and products.” He plans to provide more details after officially taking over the CEO role on Feb. 15, but Gelsinger was clear that Intel is sticking with its once mighty
AWARENESS NEEDED: The central bank urged lenders to know their customers before undertaking business for them and to seek funding in conventional ways The central bank yesterday said that it would take action against four foreign lenders for their involvement in helping companies trade in the deliverable forward market in contravention of foreign-exchange regulations. Some grain merchants newly based in Taiwan have since July 2019 been practicing questionable currency-trading activity, with the help of branches and subsidiaries of six foreign banks, the monetary policymaker told an unscheduled news conference. Affiliated firms as of July last year completed currency-related deals they referred to as trading that totaled US$11 billion, which was not in sync with their real business needs, the central bank said after wrapping up